IMF warns China over 'dangerous' growth in debt Read moreWhile praising China’s president, Xi Jinping, for his commitment to improving financial security, the IMF said reforms by Beijing in recent years had not gone far enough.
“The system’s increasing complexity has sown financial stability risks,” the IMF’s assessment said.
“Credit growth has outpaced GDP growth, leading to a large credit overhang.
The IMF also noted developments in the Chinese financial system similar to those in the US in the years before the financial crisis of a decade ago.
“Risky lending has thus moved away from banks toward the less well-supervised parts of the financial system,” the IMF said.